Oil holds near three-month high on China hopes, tighter supply
BNN Bloomberg
Oil steadied after climbing to a three-month high as China signaled further measures to bolster economic growth and global crude markets continued to tighten.
Brent crude futures held above US$82 a barrel in London on Tuesday, having gained four per cent in the previous three sessions. Top leaders in China, the largest crude importer, indicated more support for the real estate sector alongside pledges to boost consumption, although they eschewed major fiscal or monetary loosening.
“Tighter fundamentals are driving the uptick, but market concerns over demand remain, with China the persistent focus of attention,” said Raad Alkadiri, managing director for energy at consultants Eurasia Group.
Oil has pushed higher this month after the Organization of Petroleum Exporting Countries and allies pared supplies to help drain global inventories. That's offset the drag from Federal Reserve Chair Jerome Powell's campaign of monetary tightening, which is expected to continue with another rate hike this week.
